BASF Factbook 2011
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Interim report first half 2011 July 28, 2011 Interim report third quarter 2011 Oct. 27, 2011 Full year results 2011 Feb. 24, 2012 Annual Meeting 2012 / Interim report first quarter 2012 April 27, 2012 BASF SE Reports and other presentations are available on the internet at: BASF Factbook 2011 Investor Relations basf.com/share Phone: + 49 621 60-48230 Printed copies of publications can be ordered Fax: + 49 621 60-22500 basf.com/mediaorders – or by phone: + 49 621 60-91827 E-mail: [email protected] We create chemistry Publisher BASF SE, Investor Relations, 67056 Ludwigshafen, Germany BASF Corporation BASF Investor Relations U.S. Concept and design 100 Campus Drive Irlenkäuser Communication Florham Park, NJ 07932, USA Photography Phone: +1 973 245 6013 BASF Archive, ClipDealer, Fotolia, Getty Images, Rainer Holz, Masterfile, PIXELIO Fax: +1 973 245 6714 E-mail: [email protected] Published in June 2011 BASF – Letter from CEO IR Team 93 Andrea Wentscher Juliane Schöningh IR Manager Retail Investors IR Manager Sustainability +49 621 60-42296 +49 621 60-43267 Evelyn Pox Danny Grüner IR Manager Creditor Relations Junior IR Manager Kurt Bock Chairman of the Board of Executive Directors of BASF SE +49 621 60-91423 +49 621 60-43263 Investment Highlights Silvia Dochnahl Caroline Schulz Senior Event Manager IR Event Manager IR +49 621 60-95023 +49 621 60-40308 #1 chemical company worldwide with balanced portfolio and long-term strategy Competitive advantage based on our unique Verbund concept Jennifer Rieß and operational excellence Event Manager IR +49 621 60-40308 Superior growth opportunities through strong positioning in growth markets, acquisitions in core businesses and an excellent innovation platform The following publications are also available Innovator and solution provider for the challenges of the future . BASF In Brief 2010 . BASF Report 2010 . Quarterly Reports Sustainable value creation based on a sound balance sheet . Capital Market Story and financial strength BASF Factbook, June 2011 BASF Factbook, June 2010 BASF – Letter from CEO 1 Dear Investors and Analysts, It is my pleasure to introduce this 5th edition of the BASF Factbook. Over the last years we have received excellent feedback from you and we have tried to improve our Factbook furthermore. I hope you will again find it a useful tool to better understand BASF – our strategy, our operations and our performance. Being The Chemical Company also means that BASF is quite large and complex: to form an investment opinion might require a little bit more time and effort from your side. We therefore try to make your work as simple as possible by putting all the essential information into one publication. For us, transparency and open communication are key to successful investor relations. Again, in 2010 our IR team received numerous awards for its professionalism and dedication, based considerably on your input. This Factbook extends our efforts to continue this strong record. 2010 was an excellent year for our industry and also for BASF. We overcame the economic crisis of 2008/09 much faster than anticipated. We have continued to transform BASF into a company which is highly innovative, closer to the end-user and more resilient to economic cycles. And, most importantly, we continued to deliver on our promise to earn a premium on our cost of capital. Today, BASF is extremely well prepared for the challenges and opportunities of the future. Our chemical innovations are the enablers to meet the ever increasing demand for sustainable solutions. Car manufacturers, for example, are turning to BASF for intelligent solutions that lower fuel consumption through light-weight plastics or reduce emissions through highly efficient catalysts and fuel additives. The acquisitions we have made in recent years have further strengthened our portfolio with businesses that bring us closer to the end-user. With the acquisition of Cognis, for example, we have now become the leading player in ingredients for personal and home care. This is a highly attractive and strongly growing business, particularly in emerging markets. Speaking of emerging markets, I would like to highlight our impressive investment record in these regions. Our continuously growing production bases in countries such as China, Malaysia and Brazil allow us to capture growth opportunities right at the heart of those markets. 2011 has brought a change in leadership. After eight successful years, Jürgen Hambrecht stepped down as Chairman and CEO of the company. He put open communications at the very heart of his management approach, incorporating many of your ideas. In my new role I am looking forward to continuing this intensive engagement with investors and analysts and I welcome and encourage your input and feedback. I highly appreciated the first-hand feedback I got during several introductory roadshows at the beginning of this year. At BASF we believe in long-term strategy. Hence, already a year ago we communicated the change at the helm of BASF. Our first class management team tries to anticipate future trends and take advantage of them. We will continue to relentlessly improve our operational excellence, concentrate on those areas and businesses where we have key strengths and seek growth opportunities as they arise. Moreover, we will strive to grow our leadership position in the chemicals industry to deliver above average returns to our shareholders. The management team and I look forward to speaking with you and hope you will continue to follow our development in the future. Best regards Kurt Bock Chairman of the Board of Executive Directors of BASF SE Ludwigshafen, June 2011 BASF Factbook, June 2011 2 BASF – Table of Contents 1 BASF – The Chemical Company The front cover shows how BASF’s products create value in people’s every- day lives, for example, with hygiene and home care products such as super- absorbents for diapers or environ- mentally friendly chelating agents for detergents. BASF Factbook, June 2011 BASF – Table of Contents 3 BASF – The Chemical Company 2 1.1 At a glance 4 1.2 Management Board 6 1.3 Strategy 8 1 ■ Strategic guidelines 10 ■ Portfolio management 12 ■ Acquisition of Ciba in 2009 14 ■ Acquisition of Cognis in 2010 15 ■ Emerging markets 16 1.4 Verbund 18 1.5 Innovation 22 1.6 Sustainability 28 1.7 Customer Interaction Models 32 Business Segments 34 2.1 Chemicals 36 ■ Inorganics 38 ■ Petrochemicals 40 2 ■ Intermediates 42 2.2 Plastics 44 ■ Performance Polymers 46 ■ Polyurethanes 48 2.3 Performance Products 50 ■ Dispersions & Pigments 52 ■ Care Chemicals 54 ■ Nutrition & Health 56 ■ Paper Chemicals 58 ■ Performance Chemicals 60 2.4 Functional Solutions 62 ■ Catalysts 64 ■ Construction Chemicals 66 ■ Coatings 68 2.5 Agricultural Solutions 70 ■ Crop Protection 72 2.6 Oil & Gas 74 ■ Exploration & Production 76 ■ Natural Gas Trading 78 Other 80 Financials 82 3.1 BASF on the capital market 84 3.2 Ten-year summary 86 3.3 Regional results 87 3 3.4 Factors influencing sales 88 3.5 Financing 89 3.6 Balance sheet 90 IR Team 92 BASF Factbook, June 2011 4 1. BASF – The Chemical Company . 1.1 At a glance 1.1 At a glance BASF today: We create chemistry BASF is the world’s leading chemical company – The Chemical Company. Our portfolio ranges from oil and gas to chemicals, plastics, performance products and agricultural products. As a reliable partner, we help our customers in virtually all industries to be more successful. Our high-value products and intelligent solutions play an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF key facts Key figures .About 109,000 employees worldwide – thereof 9,600 in R&D 2010 .Customers in more than 200 countries and in virtually all industries Sales € billion 63.9 .Top 3 market position in about 75% of our businesses EBITDA € billion 11.1 EBITDA margin % 17.4 .Unique Verbund concept: production plants linked intelligently to save resources and energy; six world-scale Verbund sites EBIT before special items € billion 8.1 worldwide – two Verbund sites in all major regions Net income € billion 4.6 .Know-how Verbund with 70 major R&D sites and >1,900 Operating cash flow € billion 6.5 research cooperations with customers, science and partners Earnings per share € 4.96 .Strong R&D pipeline; No.1 in Patent Asset Index Adjusted EPS € 5.73 Dividend € 2.20 Dividend yield*) % 3.7 *) Dividend yield based on share price at year-end BASF history: successful tradition Since 1865, we have been shaping the future with BASF – The Chemical Company. Chemistry is our chemistry and combining innovation with tradition. strength. It makes us and our customers successful, We are proud of who we are and what we do: today and in the future. 1945-1953 Reconstruction after the severe damage during the Second World 1925-1945 BASF becomes part of IG War. BASF reestablished as an indepen- 1865-1901 Friedrich Engelhorn founds Farben industrie AG. Advances in high- dent company in 1952. Badische Anilin & Soda Fabrik to pro- 1901-1925 The synthesis of ammonia by pressure technology enable the produc- 1953-1965 Germany’s economic miracle duce coal tar dyes. Soon thereafter, the the Haber-Bosch process paves the way tion of synthetic gasoline and rubber and paves the way for the plastics era. BASF company gains a leading position in the for the production of synthetic nitrogen products from acet ylene. In 1931, the expands into markets with products such world dyes market with methylene blue, fertilizers. In 1919, the Nobel Prize in Nobel Prize in Chemistry is awarded to as polystyrene, Styropor®, nylon and alizarin and indigo. Chemistry is awar ded to Fritz Haber. Carl Bosch. polyethylene. 1865 1901 1925 1945 BASF Factbook, June 2011 1.